Corporate Leadership Council

Executive Summary

Driving Performance and Retention Through Employee Engagement

Key Questions Addressed

Recognizing an increased need to protect against unwanted attrition and safeguard productivity, senior executives seek renewed understanding of the voice of the workforce and its implications for the organization. This executive summary highlights insights to the following concerns:
How Engaged Is the Workforce? What Is the Business Impact of High Engagement? What Drives Employees Decisions to Commit to Staying with the Organization and Volunteer Extra Effort on the Job? How Does Engagement Differ by Employee Segment and by Organization? How Can Organizations Establish a High-Performance Relationship with Employees in Support of Business Needs?
KEY AUDIENCES
Heads of HR HR Leadership Senior Executive Team Line Unit Managers

RESEARCH CONTENT
Survey of more than 50,000 employees at 59 global organizations Identication of the highest impact drivers of employee engagement Employee engagement tools and strategies from best practice organizations

2004 Corporate Executive Board

Council Staff
Consultants Christoffer Ellehuus Piers Hudson Contributing Analysts Thomas Bedington Damian Smith Jiyoung Chung Contributing Associate Kate Elsam Project Managers Bruce Rebhan Earl Potter Practice Managers Gwendolen Sheridan Carl Rhodes Managing Director Jean Martin-Weinstein Executive Director Michael Klein General Manager Peter Freire

Corporate Leadership Council Corporate Executive Board 2000 Pennsylvania Avenue NW Washington, DC 20006 Telephone: +1-202-777-5000 Facsimile: +1-202-777-5100 The Corporate Executive Board Company (UK) Ltd. Victoria House Fourth Floor 3763 Southampton Row Bloomsbury Square London WC1B 4DR United Kingdom Telephone: +44-(0)20-7632-6000 Fax: +44-(0)20-7632-6001 www.corporateleadershipcouncil.com

Creative Solutions Group

Graphic Designer Christina Lynn Proofreader Tracy Banghart

Note to Members on Condentiality of Findings

This document has been prepared by the Corporate Executive Board for the exclusive use of its members. It contains valuable proprietary information belonging to the Corporate Executive Board and each member should make it available only to those employees who require such access in order to learn from the material provided herein and who undertake not to disclose it to third parties. In the event that you are unwilling to assume this condentiality obligation, please return this document and all copies in your possession promptly to the Corporate Executive Board. 2004 Corporate Executive Board Catalog no.: CLC12PD3N8

 2004 Corporate Executive Board

Driving Performance and Retention Through Employee Engagement

Driving Performance and Retention Through Employee Engagement

Top 10 Findings
1. The Corporate Leadership Council has completed a global study of the engagement level of 50,000 employees around the world, based on a new, more precise denition of engagement and its direct impact on both employee performance and retention. 2. Those employees who are most committed perform 20% better and are 87% less likely to leave the organizationindicating the signicance of engagement to organizational performance. 3. While the majority of employees are neither highly committed nor uncommitted, more than 1 in 10 employees are fully disengagedactively opposed to something or someone in their organizations. 4. There is no high-engagement or low-engagement groupcommonly used segmentation techniques based on tenure, gender, or function do not predict engagement. 5. Instead, dramatic differences between companies suggest that engagement levels are determined more by company strategies and policies than any characteristics regarding the employee segments themselves. 6. An analysis of both rational and emotional forms of engagement reveals that emotional engagement is four times more valuable than rational engagement in driving employee effort. 7. Employee retention, on the other hand, depends more on a balance between rational and emotional engagementas illustrated by the importance of compensation and benets in driving employees intent to stay.

8. While employees commitment to their manager is crucial to engagement, the manager is most important as the enabler of employees commitment to their jobs, organizations, and teams. 9. Among the top 25 drivers of employee engagement identied by the Council, the most important driver is a connection between an employees job and organizational strategy. 10. To create and sustain a high-engagement workforce, best practice organizations effectively manage four critical leverage points: Leverage Point #1: Business Risks Leverage Point #2: Key Contributors Leverage Point #3: Engagement Barriers Leverage Point #4: Culture

The Corporate Leadership Council Engagement Survey and Analysis Tool (CLC ESAT) allows Council members to survey their staff and receive an automated report dening their levels of engagement.

Available at www.corporateleadershipcouncil.com
Source: Corporate Leadership Council research.

 2004 Corporate Executive Board

Executive Summary

Finding #1: The Corporate Leadership Council presents a new outcome-focused model of engagement.
The Corporate Leadership Council presents a new model of employee engagement emphasizing business outcomes. The Council denes engagement as the extent to which employees commit to something or someone in their organization, how hard they work, and how long they stay as a result of that commitment. By using this outcomes-focused denition, we can measure the tangible benets of engagement, as opposed to focusing on engagement for engagements sake.

The Corporate Leadership Councils Model of Engagement

Engagement drivers determine rational and emotional commitment which in turn lead to resulting in improved effort and intent to stay performance and retention

Rational Commitment* Team Manager Organization

Discretionary Effort

Performance

Engagement Drivers

Emotional Commitment Job Team Manager Organization

Intent to Stay

Retention

CLCs Employee Engagement Survey 50,000 employees 10 industries 59 Organizations 27 countries

* Rational commitment to the job was not measured due to its similarity to rational commitment to the team, direct manager, and organization.

Source: Corporate Leadership Council research.

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Driving Performance and Retention Through Employee Engagement

Finding #2: Engagement is critical to performance and retention.

By increasing employees engagement levels, organizations can expect an increase in performance of up to 20 percentile points and an 87% reduction in employees probability of departure. The highly engaged outperform the average by two deciles and are dramatically less likely to leave the organization.

The Business Case for Engagement

Employee engagement drives performance
Maximum Impact of Commitment on Performance

Number of Employees

Moving from low to high engagement levels can result in an improvement in employee performance of 20 percentile points.

50th Percentile Performance

70th Percentile Performance

and retention
Maximum Impact of Commitment on Probability of Departure 9.2%

Probability of Departure in Next 12 Months

( 87%)

Moving from strong disengagement to strong engagement decreases the probability of departure by 87%.

1.2%

Strongly Noncommitted

Strongly Committed
Source: Corporate Leadership Council 2004 Employee Engagement Survey.

 2004 Corporate Executive Board

Executive Summary

Finding #3: More than 1 in 10 employees are fully disengaged.

While 11% of employees (the True Believers) demonstrate very strong commitment, 13% (the Disaffected) are actively opposed to someone or something in their organizations. The real opportunity lies with the middle 76% of employees (the Agnostics) who are only modestly committed.

The State of Workforce Engagement

Based on a sample of 50,000 employees surveyed in 2004

The Disaffected

The Agnostics

The True Believers

76% 13% 11%

Characteristics Exhibit very little commitment Poorer performers who frequently put in minimal effort Four times more likely to leave the organization than the average employee

Characteristics Exhibit moderate commitment Employees neither go to great lengths in their jobs nor do they shirk their work Signicant variation in intent to leave

Characteristics Exhibit very strong commitment Higher performers who frequently help others with heavy workloads, volunteer for other duties, and are constantly looking for ways to do their jobs more effectively Half as likely to leave the organization as the average employee

Source: Corporate Leadership Council 2004 Employee Engagement Survey.

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Driving Performance and Retention Through Employee Engagement

Finding #4: There is no high-engagement or low-engagement group.

There is no demographic group whose engagement is always high or always low. Rather, employee engagement is a characteristic not of groups but of individual people to be won or lost, improved or diminished, by their organization.

No Easy Litmus Tests

Quick rules of thumb will prove inadequate as a means of identifying the committed and uncommitted
Generation X Slackers?
12.0% 11.7% 10.6%

Single Parents with Children?

12.0% 10.8% 11.4%

Percentage of Employees with Highest 6.0% Commitment Levels

Percentage of Employees with Highest 6.0% Commitment Levels

0.0% Employees Over 40 Employees Under 40

0.0% Single Parents with Three Children Single People with No Children

Overworked Managers?
12.0% 9.9% 10.8%

Percentage of Employees with Lowest 6.0% Commitment Levels

0.0% Managers Managers Working Working Fewer Than More Than 60 Hours per 60 Hours per Week Week

Source: Corporate Leadership Council 2004 Employee Engagement Survey.

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Executive Summary

Finding #5: Dramatic differences exist in engagement levels between companies.

While minimal differences in engagement exist across demographic segments, dramatic differences exist across organizations. Organizations with a highly engaged workforce have almost 10 times as many committed, high-effort workers as those with a low-engaged workforce.

Where Would You Like Your Organization to Be?

Organizations exhibit dramatic differences in the discretionary effort of their employees
Percentage of Workforce Exhibiting Highest Effort Levels by Company

25.0%

Nearly 25% of the workforce in this organization exert maximum effort while in this organization, less than 3% of the workforce are willing to do the same.

Percentage of Company Workforce Exhibiting Highest 12.5% Level of Discretionary Effort

0.0%

Companies

Source: Corporate Leadership Council 2004 Employee Engagement Survey.

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Driving Performance and Retention Through Employee Engagement

Finding #6: Emotional engagement is four times more valuable than rational engagement in driving employee effort.
Employees stay with their organizations when they believe it is in their self-interest, but they exert discretionary effort when they believe in the value of their job, their team, or their organization. In fact, emotional commitment is four times as valuable as rational commitment in increasing effort levels.

Performance Depends on the Heart Over the Mind

Employees try (or dont try) as a result of emotional commitment, not rational commitment
Maximum Impact of Commitment Type on Discretionary Effort1

A strong emotional commitment to ones job and organization has the greatest impact on discretionary effort. 55.9%

Emotional Commitment 2 Rational Commitment

43.2% 38.9%
Change in Discretionary Effort

The impact of rational commitment is much smaller. 34.0%

18.4% 13.8% 7.6%

Emotional Commitment to the Job

Emotional Commitment to the Organization

Emotional Commitment to the Team

Emotional Commitment to the Manager

Rational Commitment to the Organization

Rational Commitment to the Team

Rational Commitment to the Manager

Council research demonstrates that increased discretionary effort is a direct predictor of improved performance. 2 Emotional commitment is dened as the extent to which employees derive pride, enjoyment, inspiration, or meaning from something or someone in the organization. While rational commitment is dened as the extent to which employees feel that someone or something within their organizations provides nancial, developmental, or professional rewards that are in their best interests.

Source: Corporate Leadership Council 2004 Employee Engagement Survey.

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Executive Summary

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Finding #7: Compensation and benets matter more to retention than effort.
While competitive compensation and benets packages are crucial to attract and retain talent, other drivers of engagement are far more effective in driving discretionary effort.

The Impact of Compensation and Benets

Compensation has a much larger impact on retention than on performance
Maximum Impact on Discretionary Effort and Retention Due to Satisfaction with Total Compensation Package*

21.1%
Change in Discretionary Effort or Improvement in Intent to Stay

Increasing satisfaction with total compensation provides up to a 21% increase in employees intent to stay but only a 9% increase in effort.
9.1%

Intent to Stay

Discretionary Effort

* Each bar represents a statistical estimate of the maximum total impact on discretionary effort or intent to stay each lever will produce through its impact on rational and emotional commitment. The maximum total impact is calculated by comparing two statistical estimates: the predicted discretionary effort or intent to stay for an employee who scores high on the lever and the predicted discretionary effort or intent to stay for an employee who scores low on the lever. The impact of each lever is modeled separately.

Source: Corporate Leadership Council 2004 Employee Engagement Survey.

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Driving Performance and Retention Through Employee Engagement

Finding #8: The manager is most important as the enabler of employees commitment to their jobs, organizations, and teams.
While commitment to the manager is often pointed out as the key driver of engagement, Council research nds, surprisingly, that the manager actually plays a more important role as enabler of employee commitment to the job and organization.

Manager as Conduit for What Matters

Managers enable other, more valuable, forms of commitment
Impact of Highest-Scoring Manager Activities and Attributes on Commitment Foci*

Emotional Commitment to Manager

73%

Manager Activities and Attributes

Emotional Commitment to Team Emotional Commitment to Organization

47%

38%

Emotional Commitment to Job

34%

A Means, Not an End

Though commitment to the manager is not itself the most powerful driver of effort, the manager has tremendous impact on employees level of commitment to the team, organization, and job.

* Each value represents a statistical estimate of the maximum total impact on emotional commitment to the manager, team, organization, or job as a result of the highest-scoring manager attribute. The maximum total impact is calculated by comparing two statistical estimates: the predicted emotional commitment to each foci for an employee who scores high on this manager attribute and the predicted emotional commitment to each foci for an employee who scores low on this manager attribute. The impact on each foci is modeled separately.

Source: Corporate Leadership Council 2004 Employee Engagement Survey.

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Executive Summary

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Finding #9: The top 25 drivers of engagement point to the importance of employees connection to the organization.
Most important among the 25 highest-impact drivers of engagement are a connection between employees job and organizational strategy and employee understanding of how important their job is to organizational success. Also critical for increasing engagement levels are numerous manager characteristics, as well as cultural traitspredominantly, good internal communication, a reputation of integrity, and a culture of innovation.

The Top 25 Levers of Engagement

Top 25 Most Effective Levers of Effort
Lever 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Connection Between Work and Organizational Strategy Importance of Job to Organizational Success Understanding of How to Complete Work Projects Internal Communication Demonstrates Strong Commitment to Diversity Demonstrates Honesty and Integrity Reputation of Integrity Adapts to Changing Circumstances Clearly Articulates Organizational Goals Possesses Job Skills Sets Realistic Performance Expectations Puts the Right People in the Right Roles at the Right Time Helps Find Solutions to Problems Breaks Down Projects into Manageable Components Accepts Responsibility for Successes and Failures Encourages and Manages Innovation Accurately Evaluates Employee Potential Respects Employees as Individuals Demonstrates Passion to Succeed Cares About Employees Has a Good Reputation Within the Organization Innovation Is Open to New Ideas Defends Direct Reports Analytical Thinking Impact 32.8 30.3 29.8 29.2 28.5 27.9 27.6 27.6 27.6 27.2 27.1 26.9 26.8 26.7 26.6 26.5 26.3 26.1 26.0 26.0 26.0 26.0 25.9 25.8 25.7 Category D D D O M M O M M M M M M M M M M M M M M O M M M

O D M

Organizational Culture and Performance Traits Day-to-Day Work Characteristic Manager Characteristics

Source: Corporate Leadership Council 2004 Employee Engagement Survey.

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Driving Performance and Retention Through Employee Engagement

Finding #10: To create and sustain a high-engagement workforce, organizations must manage four critical leverage points.
Council research reveals that best practice organizations sustain a high-engagement workforce by focusing on four critical leverage points: business risks, key contributors, drivers of disengagement, and culture.

Engaging the Workforce

Focusing on critical leverage points to drive employee engagement
Leverage Point #1 Prioritizing EngagementDriven Business Risks Leverage Point #2 Engaging Key Contributors Leverage Point #3 Targeting Drivers of Disengagement Leverage Point #4 Building a HighEngagement Culture

The 3 Cs of Culture: Connection Contribution Credibility

*

Strategic Engagement Gap Analysis

Solid Performer Career Pathing

Cultural Assessment Process

Leader Storytellers

Culture Change Engagement Cascade

Values Realization System

Key Insight Returns on engagement practices require a link between engagement and business outcomes. Organizations should rely on economics and business strategy when determining whom to engage and how to engage them in support of business outcomes.
* Pseudonym.

Key Insight Organizations must target investments to those individuals who contribute the most to the business, while realizing that these people are not all high performers or high potentials as they have been traditionally dened.

Key Insight Before any proactive organizationlevel engagement strategy will succeed, organizations must rst identify and remove the drivers of disengagement, many of which are invisible to traditional methods of detection, such as employee engagement surveys.

Key Insight The Council has identied three essential components of a high-engagement culture: connection, contribution, and credibility. A highengagement culture needs reliable mechanisms to ensure employees are consistently experiencing all three of these elements.

Source: Corporate Leadership Council 2004 Employee Engagement Survey.

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Executive Summary

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Leverage Point #1: Prioritizing Engagement-Driven Business Risks

Practice #1

Strategic Engagement Gap Analysis

Intuit ensures that all strategic planning includes consideration of human capital risk
Intuit Practice Features Engagement data and strategic planning are integrated
Strategic Plan
Required Engagement Prole

Engagement driver analysis prioritizes issues for managers

Survey Question ___________ ___________ ___________ ___________ ___________ Score Strategic Gap _______ _______ _______ _______ _______ Follow Up

Guided by strategic priorities, managers design and execute action plans

Desired Outcome: Better-dened career development paths that are more aligned to team members career aspirations. Main points from the feedback session: Current career development paths, particularly those supporting a technical track, are not well understood. Currently, most career management discussions address immediate skills gaps and are not focused on identifying long-term career goals and paths to attain them. Budget: $0 Owner: Bly, Joi Patel Pritor Due Date: 07-01-2004 08-15-2004 10-15-2002

2004 Action Plan Owner: Parker Pritor Type: Organizational Action Plan Engagement Drivers: My career goals can be met at Intuit

Action Plan Details Implementation Team: Parker Pritor, Peter Patel, Sue Bly, Lynn Joi Action Plan Steps: 1. Collect best practices on career paths from other business units. 2. Create development paths to support career growth. 3. Draft and communicate career management responsibilities.

Results: Using the engagement gap analysis, one business unit experienced an increase in engagement scores from 77% to 87% in one year and enjoyed a concurrent 21% increase in customer satisfaction.

Key Observation
Focus on Business Risks: Take engagement-related action only in the places where business outcomes are at risk.
Source: Intuit Inc.; Corporate Leadership Council research.

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Driving Performance and Retention Through Employee Engagement

Leverage Point #2: Engaging Key Contributors

Practice #2
*

Solid Performer Career Pathing

Harrison Company reanalyzes solid performers contributions and identies structural barriers limiting the companys ability to engage these performers
Harrison Company Practice in Summary

Redene Solid Performers Contribution

Remove Structural Barriers to Solid Performer Engagement

Maximize Lifetime Contribution of Solid Performers

Employee of the Year

Identify contribution types and their impact Distinguish solid performer subgroups Research the compelling offer for solid performers

Identify opportunities and barriers in the current structure Restructure roles to support engagement Formalize role descriptions and structure

Encourage career discussion candor Explain performance improvement rationale Align performance assessment with contribution

Results: By improving the engagement and retention of its solid performers, Harrison Company increasingly relies on the contribution of its solid performers to grow its core domestic businessexperiencing a 20% increase in the companys domestic retail sales in one year.

Key Observation
Focus on Key Contributors: Expand the organizations denition of contribution and engage the employees who are critical to achieving business success.
* Pseudonym. Source: Harrison Company * ; Corporate Leadership Council research.

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Executive Summary

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Leverage Point #3: Targeting Drivers of Disengagement

Practice #3

Cultural Assessment Process

Caterpillar provides business units with a Cultural Assessment Process (CAP) that enhances business results through increased employee engagement
Caterpillars Cultural Assessment Process* Component #1: Establish the Relationship Between Culture and Business Results
Caterpillars Culture Impact Value Chain
Three Invisible Aspects of Culture Three Visible Aspects of Culture

Component #2: Identify the Invisible and Visible Components of Organizational Culture

Perceptions

Actions

Results

Road Maps Relationships Reinforcements

Communication Learning Reinforcements

Component #3: Identify Cultural Barriers to Engagement

Focus Group Survey
______ ______ ______

Component #4: Determine Solutions to Cultural Barriers to Engagement

120-Day Action Plan Caterpillars Seven Action Plan Areas Leadership Strategy Policies and Procedures Communication Training and Development Operations Organizational Culture Typical Follow-up Actions Greater consistency in management Communicate vision, mission, and strategic objectives Clarify and communicate overtime policy Improve bottom-up communication channels Improve functional career development opportunities Increase exibility around production scheduling Enhance sense of belonging through communications and events

Results: One business unit undergoing the Cultural Assessment Process experienced a 59% decline in attrition and a 44% decline in absenteeismcreating an annual savings of $8.8 million.

Key Observation
Focus on Engagement Barriers: Ensure a thorough understanding of all sources of disengagement before attempting to redress engagement concerns.
* Caterpillars Cultural Assessment Process is currently patent pending. Source: Caterpillar Inc.; Corporate Leadership Council research.

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Driving Performance and Retention Through Employee Engagement

Leverage Point #4: Building A High-Engagement Culture

Practice #4

Leader Storytellers
Leaders build communication skills by creating and telling a story to peers, receiving feedback, and learning to adjust stories for specic audiences and objectives
Continental Airlines Storytelling Practice Sessions

I. Design a Story

II. Tell the Story and Receive Feedback

III. Tailor the Story for Specic Audiences

IV. Tailor the Story for Specic Objectives

Identify a true event that can become a compelling story

Deliver your story to class participants and serve as audience for their stories

Assess the emotional Determine how the story impact of your story relates to current challenges on your listeners or opportunities

Consider how the story should be tailored to reservation agents, ight attendants, and mechanics Modify the story, creating a version for each audience

Consider how your story could be used to teach different lessons Craft two new versions of the story and share them with other participants

Results: More than 95% of the executives indicate that they have improved their communication skills signicantly since taking the storytelling course.

Key Observation
Focus on a Culture of Connection: Executive-led storytelling is a highly effective means of creating connections between individual employees and the organization for which they work.
Source: Continental Airlines, Inc.; Corporate Leadership Council research.

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Executive Summary

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Leverage Point #4: Building A High-Engagement Culture (Continued)

Practice # 5

Culture Change Engagement Cascade

The RPD* successfully shifts to a culture of employee contribution by tailoring contribution strategies to each level of the organization
Contribution Strategy Pitfalls and Alcoa Practice Standard Practice Leadership team denes approach to employee involvement and communicates this in a top-down way Managers try to nd opportunities to contribute and build opportunities for subordinate involvement Employees have access to mass forms of contribution, for example, via suggestion boxes Pitfalls Leaders devolve few of their powers and their structure inadvertently blocks business units efforts to contribute In the face of pressing business targets, managers efforts are piecemeal and often unconnected to the business strategy Employee suggestions are low in quality and managers rarely follow up on suggestions Alcoa Practice Restructure Leadership to Enable Contribution: Understand contribution gaps Remove structural barriers to contribution Involve Managers in Dening Contribution Strategy: Involve managers in business problem solving Link contribution behavior to business strategy Build Contribution Opportunities in the Wider Workforce: Communicate the rationale for employee contribution Raise frontline business awareness

Leadership Team

Middle Management

Frontline Staff

Results: By shifting the culture of the unit to one where employees feel accountable and involved, the RPD has increased its Return on Capital by 80% over a three-year period.

Key Observation
Focus on a Culture of Contribution: Employers must create opportunities for employees to make meaningful contributions in their work to ensure full engagement.
* Rigid Packaging Division. Source: Alcoa Inc.; Corporate Leadership Council research.

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Driving Performance and Retention Through Employee Engagement

Leverage Point #4: Building A High-Engagement Culture (Continued)

Practice #6

Values Realization System

To reap the benets of employee commitment, Novo Nordisk constantly reinforces its values and holds managers accountable for living them
Novo Nordisks Approach to Living the Company Values
Living the Company Values Step 1: Translate Values into Behaviors and Actions Step 2: Reinforce Values at All Employment Levels Step 3: Assess Behavioral Alignment with Values

Employee

Manager

Executive Global Values Facilitation Team

Perceived Benets from Implementing and Supporting Values

Sharper focal point for decision making (i.e., less confusion) Employees know what decisions to expect from the management team Customers know what actions to expect from the company Increased morale, pride, and team identity Increased customer loyalty Stronger attraction of new employees Improved employee satisfaction and retention Stronger market and employment brand

Results: Eighty-ve percent of Novo Nordisk employees today agree that senior management is living the company values in practice; Novo Nordisk has earned the number-one place among pharmaceutical companies on the Dow Jones Sustainability Index.

Key Observation
Focus on a Culture of Credibility: To ensure ongoing organizational credibility, clarify expected behaviors for different roles, enforce alignment of desired behaviors and action, and strengthen leadership credibility through behavioral support.
Source: Novo Nordisk A/S; Corporate Leadership Council research.

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Executive Summary

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To Diagnose the Engagement Levels of Your Employees

Available at www.corporateleadershipcouncil.com as of November 22, 2004. Free of charge to all Council members.

From Insight to Action

The CLC Engagement Survey and Analysis Tool (ESAT) provides members with an opportunity to assess employees level of engagement benchmarked against industry peers
Access the 2004 Employee Engagement Survey questions. Survey your workforce on demand and online.

The Corporate Leadership Councils new Engagement Survey and Analysis Tool (ESAT) enables HR executives to: Survey their workforces online in the type of employee engagement that matters most to high performance and low attrition Benchmark their workforces against a growing database of more than 50,000 employees from 59 organizations, 10 industries, and 27 countries Track changes in their workforce over time

Access the dataset relevant to your organization.

Source: Corporate Leadership Council research.

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Driving Performance and Retention Through Employee Engagement

To Evaluate Your Organizations Employee Engagement Strategy

The Corporate Leadership Council has developed this abbreviated diagnostic to assist HR executives in evaluating their effectiveness in engagement management and to identify areas for improvement. The full version of the engagement strategy diagnostic tool is available in the Councils research publication on employee engagement.

Engagement Strategy Diagnostic Tool

Yes 1. Does the organization understand the level of engagement across the workforce? 2. Does the organization understand which types of engagement, in which parts of the organization, matter most to business success? 3. Does the organization adapt its engagement strategy in line with changes in business strategy? 4. Does the organization have an effective process for closing engagement gaps where they represent a risk to business goals? 5. Does the organization have a clear understanding of how different segments of employees contribute to business outcomes? 6. Does the organization recognize and reward the different kinds of employee contribution that are most important to realizing current strategic priorities? 7. Does the organization have an effective means of identifying the root causes of disengagement? 8. Does the organization actively involve employees in the process of identifying and removing barriers to engagement? 9. Do all employees have a clear understanding of the connection between their job, their individual contribution, and the organizations strategy and success? 10. Does the organization understand the different types of involvement required, at different levels, to ensure all employees effective contribution to business goals? 11. Do executives understand the role of organizational credibility in enabling emotional engagement? 12. Is the organization able to identify cases of misalignment between stated mission or values and actual practice? No

Scoring System
Number of Yes Responses 10+ 8 to 10 0 to 7 Overall Effectiveness of Employee Engagement Management Excellent; a source of competitive advantage Fair; improvement possible Low; focused development recommended

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